Introduction to contemporary issues in development finance

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book examines issues in development finance by focusing on how financial systems and innovations in financial resource flow can drive the economic growth and development process. It provides an up-to-date review of the role of microfinance in the process of development. The book then discusses the role of international private capital flows in promoting economic growth and explains the difference between various types of private capital flows, such as foreign direct investments and foreign portfolio investment. It also discusses the system of global economic and financial governance – the so-called global financial architecture – that facilitates the flow of external capital. The book explores the evolution and changing role of sovereign wealth management and asset-liability management in emerging economies. It then examines how financing agriculture can promote inclusive development and reduce poverty and inequality.